Ring sells Delaware basin assets, pursues New Mexico asset sale to further reduce debt

Ring Energy Inc. completed a sale of non-core assets in the West Texas Delaware basin to an undisclosed, unaffiliated private buyer in this year’s second quarter. 

The deal included a gross sales price of $8.25 million. Ring received net proceeds of about $7.8 million, which was used to pay down debt, the company said in a release July 5. Recent production from the asset averaged 240 boe/d net (85% oil).

The sale “emphasizes our focus on building and developing our core positions in the Northwest Shelf and Central Basin Platform,” said Paul McKinney, chairman and chief executive officer.

Separately, the company is pursuing the sale of its operated assets in New Mexico. The assets for sale include about 5,700 gross (5,180 net) acres and currently produce about 300 boe/d net (93% oil).

Ring ended second-quarter 2023 with $397 million of borrowings outstanding on its recently reaffirmed $600 million borrowing base on its $1 billion credit facility. During the quarter, Ring paid down debt by $25 million from its first-quarter 2023 balance of $422 million.